iCalculator™ ES: Spain Tax Calculators
Welcome to iCalculator™ ES, your comprehensive suite of free tax calculators for Spain. iCalculator™ has provided free tax calculators for Spain since 2017. Since those early days we have extended our resources for Spain to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Spain Tax Calculator and salary calculators within our Spain tax section are based on the latest tax rates published by the Tax Administration in Spain. In this dedicated Tax Portal for Spain you can access:
Spain Tax Calculator 2023/24
The Spanish Income Tax Calculator is designed for individuals living in Spain and filing their tax return in Spain who wish to calculate their salary and income tax deductions for the 2023 Tax Assessment year (1st January 2023 - 31st December 2023). You can include your income, Capital Gains, Overseas Pensions, Donations to charity and allowances for family members. You can also select future and historical tax years for additional income tax calculations (where figures are held, if you would like to calculate your income tax deductions for Spain for a year which is not shown please contact us and we will integrate the relevant tax tables).
Enter your employment income and expenses to produce an income tax calculation for Spain or select advanced to edit the default setting and change the salary calculation to match your circumstances.
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Taxation in Spain
Spain, Officially the Kingdom of Spain, is the largest country in Southern Europe. Spain is the world’s thirteenth largest economy, and a member of the Organization for Economic Co-operation and Development and the World Trade Organization.
Tax Administration of Spain
The Agencia Estatal de Administración Tributaria (AEAT), commonly known as Agencia Tributaria, , management of the customs and repression of smuggling. The agency was created in 1991 and has been operational since January 1992. AEAT also does revenue collection on behalf of the European Union. You can access the Online portal for AEAT here.
Let’s discuss the details of various taxes that are levied on individual and corporate income.
Income tax - Individuals
The Tax year for Individuals is the same as the calendar year. The Period for declaring and paying PIT (Personal Income Tax) is established annually by ministerial order. The filing and payment window for taxes generally opens up in early April, and closes by late June following the tax year end. The minimum threshold to file PIT is EUR 22,000. For employees that have income from two sources, the minimum income threshold is EUR 14,000.
Penalties for underpayments range from 50% to 150% of the unpaid tax liability. For late payment, interest and surcharges (from 5% to 20%) are imposed if the tax payment is done voluntarily without any investigation.
Resident individuals must declare any assets held abroad annually. Filing joint tax returns for married couples is allowed.
Resident individuals are taxed on worldwide income and non-residents are taxed on Spanish source based income. The Following are considered as taxable income for PIT in Spain:
- Salaries or wages, Living allowances, Housing allowances, Bonuses.
- Remunerations in kind (e.g. Schooling and rent-free housing).
- Pension income.
- Remuneration of directors and members of boards of directors.
- Tax reimbursements.
- Award money paid to deputies, senators, councilors for the performance of their work.
- Income from artistic or scientific works when the trading rights in such works have been transferred.
- Income generated from providing courses, conferences, seminars, etc.
- Income derived by NGOs from involvement in humanitarian or welfare activities.
- Alimony received from an ex-spouse and non-exempt annuities for food.
Income Tax Rates
The basis is split into two important categories, savings taxable income and ordinary taxable income. Rates for saving taxable income are:
- First Euro 6,000 of taxable income is taxed at 19%
- Euro 6,000 to 50,000 are taxed at 21%, and
- 23% tax is charged on the amount exceeding Euro 50,000.
Progressive tax rates apply to general tax income. These rates are approved separately by each state and the autonomous communities in Spain. Tax liability may differ from one autonomous community to another. The common guidelines to withholding tax at progressive rates applicable, the latest rates and thresholds are available here.
Autonomous Community tax rates:
Investment income and capital gains are taxed at 19% of the revenue up to EUR 6,000. At 21% of income between EUR 6,000 to EUR 50,000 and at 23% of income over EUR 50,000.
Note: Each Autonomous community has to approve its own tax rate brackets.
Tax on capital gains derived by an individual by selling the main residence is exempt, given the proceeds are used to purchase another permanent residence within 2 years. The Capital gains of this sort may also be subject to exemption if the seller is over 65 years of age and the proceeds are invested in a pension plan that meets the defined criteria.
In case of transfer of properties located in Spain by nonresident individuals without permanent establishment, a 3% of the price is required to be deposited with tax authorities by the purchaser. This is considered as withheld advanced payment of capital gains tax.
- Capital duty - Individual shareholders are subject to a 1% tax on revenue generated from liquidation or capital reduction of a company.
- Transfer Tax - Individuals pay a 6% tax on acquisition from individuals and on the Spanish real estate that is not subject to VAT. The rate may vary according to the region.
- Stamp duty - The stamp duty is levied at the rate of 0.5% of the subject of notarized documents registered in a public register. The rate may vary according to the region and the type of transaction between 0.75% and 2.5%.
- Inheritance tax - It is a source based tax which is levied on inheritance and gifts that are given or received by residents of Spain or gift assets located at a Spanish source. Nonresidents are taxed only on source based assets. The tax rates range between 7.65% and 34%.
- Real property tax - This tax is applied to the value of the property depending on municipal decisions and category of real estate. Generally, the applicable rate is up to 1.3%.
- Net worth tax - Spain levies net worth tax, which may range from 0.2% to 2.5% of the value of property. The rate is established by each autonomous region.
Deduction and allowances
Deductions on personal income tax are available for each type of income. In some cases a deduction for mandatory social security is permitted. A 30% of deduction may be allowed for employment income given it meets the specific criteria.Corporate Income Tax (CIT)
Compliance for corporations - Corporate taxes are to be filed within 6 months and 25 days following the end of the tax year. Advanced corporate tax is paid in 3 installments in April, October and December each year. Final payment is made at the time of filing.
The tax year coincides with the accounting period. It may not exceed 12 month period.
Consolidated returns are permissible upon meeting the defined criteria. Penalties and interest are payable for late filing and failure to comply with the tax law.
Basis of Tax
Resident companies are subject to tax on worldwide income and nonresident companies are taxed only on Spanish-source income, subject to the provision of an applicable tax treaty. Branches and subsidiaries are taxed in a similar manner.
Corporate Tax rate
A flat CIT of 25% applies to the global amount of taxable income on tax resident and nonresident entities. Special rates may apply in certain cases, such as banks which are subject to 30% tax rate.
Dividends and capital gains from Spanish and foreign subsidiaries may be exempt from corporate tax, given they meet all the requirements. There are many circumstances in which participation exemptions do not apply, such as in the case of dividends and capital gains that are already claimed as an expense for tax deductions at the level of entities.
Up to Euro 5 million may be claimed as a cash rebate for research and development (R&D) Credit under the tax incentive regime, given they meet the defined criteria.
Net operating losses may be carried forward indefinitely, however carry back of losses is not permitted. The percentage cap on the losses differs on the basis of the turnover amount.
- Dividends - Certain dividends are subject to reduced tax when they fall under tax treaties or EU parent subsidiary directive. All other dividends that are paid to non-residents are subject to a 19% of withholding tax.
- Royalties & Interest - Royalties are subject to a 24% of withholding tax and interest is subject to a 19% withholding tax when paid to nonresidents (including nonresident individuals). The rates may be reduced if they fall under tax treaties or can be exempted from tax if they fall under EU interest and royalties directive.
- Technical service fee - Technical service fee paid to a nonresident company are subject to a 24% withholding tax unless reduced under a tax treaty.
Other taxes on corporations
- Real property tax - A real property tax up to 1.3% on the cadastral value of the property is applicable. This is levied by the municipality and varies depending on the category and other circumstances.
- Capital Duty - A 1% capital duty is applicable to the allocation of assets upon reduction of capital or liquidation of the company.
- Social security - An employer is subject to a contribution towards social security for its employees. This is collected at 29.9% of the monthly gross salary. Employee contribution stands at 6.35%. Employers are liable to make contributions towards professional contingencies that vary from 0.75% to 2.5% depending on the nature of activities.
- Stamp duty - Stamp duties are levied at 0.5% of the value of the subject of the notarized document. The rate may be increased due to the type of transaction and different regions. The stamp duty is not on transactions that are subject to transfer tax.
- Transfer Tax - The standard rate is 6% on acquisition from Individuals and on Spanish real estate where VAT does not apply. This may differ according to the region.
Value added tax (VAT)
VAT is generally applied on imports, and supply of goods and services performed in Spanish VAT territory. You can calculate the VAT due on goods in Spain using the Spain VAT Calculator
VAT Rate in Spain
VAT is levied at the standard rate of 21% with reduced rate of 10% and 4%. Exemption of VAT applies to certain transactions.
Filing and payment in Spain
Monthly returns to be filed when the annual turnover exceeds EUR 6 million. An Electronic VAT reporting system (SII) has been made mandatory for filing monthly returns. For turnover, lower than 6 million one may file returns on a quarterly basis.